Houston’s new-home sales defied inventory challenges and rose for the fourth straight month in May. New homes sold faster and at a higher average price than the previous month, according to a new HomesUSA.com report.
The three-month moving average of Houston new-home sales shows sales listed in the Multiple Listing Service (MLS) in May increased month over month from 1,775 to 1,797.
The HomesUSA.com New Home Sales Index also reported good news for potential buyers. The three-month moving average for May showed signs of housing supply improvement, with new-home MLS listings increasing to 7,373 from 7,208 in April.
The report, which includes findings for Houston, Dallas-Fort Worth, Austin and San Antonio, is based on data from the Houston Association of REALTORS®, North Texas Real Estate Information Systems, Austin Board of REALTORS® and San Antonio Board of REALTORS®.
New-home sales picked up in May as the three-month moving average for days-on-market was 68.14, down from 73.40 in April. The average price of a new home in Houston increased from $414,058 to $416,787, up 10% from May 2021.
“Builders are clearly improving inventory, as Houston new-home sales continue to defy conventional wisdom with persistent strength,” said Ben Caballero, CEO of HomesUSA.com. “As builders’ costs keep increasing, demand is still exerting upward pressure on new-home prices, setting records in three of Texas’ four largest new-home markets last month, including Houston.”